Frequently asked questions
Frequently asked questions - Buying a Business
Please find below the answers to the most frequent questions we get asked. If there is any point you can't see an answer to please contact us and we'll be delighted to talk with you and address any queries you might have.
What Happens When I Contact You?
You will be put through to one of our experienced team who will initially engage you in an informal but confidential discussion over the telephone. This will give us the opportunity to appraise your situation, understand your requirements and make sure you completely identify with all the procedures when looking to purchase a business.
What information is required at the initial stage?
Depending on your requirements, some of the questions below may be discussed. Please treat these points as guidelines only as we may not need all the information at this early stage.
- Have you decided exactly what business sector you are looking to purchase?
- Are you purchasing a business to add to an existing business?
- Do you have any past experience in the sector you are looking to purchase?
- Do you have a complete business plan?
- Do you have the relevant financial plan in place?
- In what time scale are you looking to complete the purchase?
We can advise you and explain any of the above if you do not completely understand any point and our staff will be more than happy to give you any time you require to make sure you have clarity in all procedures.
Why should I buy an existing business?
A big advantage in purchasing a running business is that it already has an established customer base, trained employees, market-proven products and services as well as an existing cash flow.
Why should I use a business broker?
You, like every other prospective buyer have a great vision of being your own boss and calling your own shots.
You may have great business skills and be experienced; however there are so many different aspects in purchasing a business that you will want to benefit from an experienced team who understand every aspect of business as well as the capability to guide you through from the initial conversation right through to completion of the acquisition.
As a business buyer you will be concerned why the business owner is selling. There are so many variety of reasons; retirement, poor health, relocation, or simply the will to move on.
You will want to know the management and financial structure of the business and whether it will suit your plans and in particular if with your proper management there is the possibility for you to sustain or increase the track record of the vendors business.
One of the main benefits of using a business broker is to make sure you pay the right price relative to the value of the business you are purchasing. Many businesses sell for less then their listed price and with the correct guidance you can make sure that you are paying the right price and getting good value for your money.
Why should I use Kensington Business Brokers?
Kensington Business Brokers (KBB), are dedicated to providing you with superior service throughout the entire buying process. We make the procedure for you as smooth as possible and with the least complications as achievable.
KBB can save you time as well as money.
KBB completely protect your confidentiality when buying a business.
KBB keep the procedures moving as swiftly as both parties require.
KBB offers a personal & professional service at all times.
We can make sure that all the queries and worries you have can be understood by us before we arrange for you to meet the vendor. We spend a good deal of time with the vendor to make sure we are aware of all aspects of the business and exactly why the vendor is selling as well as understanding the value and financial aspects of the business.
What are the tax implications of buying a business?
This depends if you are a sole trader, partnership or limited company. Some form of tax is inevitable. It is vital you get advice on the taxes applicable to your circumstances. The right tax advice can have a big impact on how your deal is structured and ultimately how much you have to pay the Chancellor of the Exchequer.
At Kensington by combining our sales & marketing expertise together with our group specialist tax division and accountancy knowledge we are in a prime position to offer you the best advice possible.
I want to purchase a specific business, what can you do for me?
We would work on your behalf to assist you in the purchasing of the business. We can make a “no names” approach to contact the right people in the targeted business.
Once that approach is taken to the next level we will help in the deal structure and negotiate with the vendor and their advisors for you.
How long does it take to purchase a business?
This depends on the market conditions and what is for sale. However, an average business sale takes between three to nine months from start to finish, although you should allow a full year. In many cases the actual buyer and seller are in contact within the first month.
Can you arrange finance?
We have excellent contacts with retail banks, finance houses and independent brokers. We are happy to arrange contacts for a purchaser if necessary.
How do you keep the purchase of a business confidential?
One of your main worries you might have is the confidentiality aspect and we entirely understand your need to remain anonymous, so that neither your staff, customers, suppliers nor competitors will be made aware of the arrangement until you can introduce them to all the beneficial aspects of the deal. We are acutely aware of the sensitive nature of buying and selling businesses and will at all times endeavour to ensure the highest level of confidentiality and discretion and this includes making all necessary parties, including ourselves sign a up to a confidentiality agreement. No confidential details of any business are ever given to potential purchasers without a client's consent.
How will I know what's going on?
Working closely with you, we regularly update you at every stage of the process. No details about your business are ever given out without your express permission. You control who we talk to and what we tell them. We are accountable to you at every step of the way.
What are your fees?
Our fees are predominantly contingent - in other words, we don't get paid until we produce a result for you. We are remunerated on a percentage of the final sale price. The only fee you may have to pay is marketing costs, where we agree to actively proceed in acquiring a business for you. We accomplish this by running a targeted advertising campaign on your behalf.
All our fees are negotiable.
How much time will I have to put into the process?
The main advantage of using a broker is that you can continue running your business while we independently try and seek a business for you to purchase. We will contact you to update you on any aspects but we can always arrange to contact you out of normal business hours if this would suit you better. We handle virtually all of the time-consuming or potentially intrusive elements of the acquiring process on your behalf.
What about solicitors?
A solicitor's job is to draw up the definitive sale and purchase contract once a deal is agreed. It is absolutely vital that you work with a solicitor whose main field of expertise is corporate law - principally the buying and selling of businesses. Again we can introduce you and work together with you to find the most suitable solicitor with the relevant experience.
We look forward to working with you and achieving beneficial outcomes for all parties and we want you to know that we will always be available for the slightest query and you are always welcome to contact us at any time, evenings included.